Employee contributions toward the cost of employee benefits are treated in several different ways for tax purposes.

Question

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Employee contributions toward the cost of employee benefits can be made on a pre-tax or post-tax basis, affecting the taxable income of the employee and the tax treatment of the benefits. Pre-tax contributions reduce taxable income, while post-tax contributions do not. Different benefits may also have specific tax rules.

Employee Contributions Toward the Cost of Employee Benefits Are Treated